Sweden: Sweden leaves deflation in March
April 11, 2013
In March, consumer prices rose 0.4% over the previous month, which mirrored the rise tallied in February. According to Statistics Sweden (SCB), the reading was mainly influenced by price increases for clothing and shoes.
As a result of the monthly increase, inflation was 0.0% in March (February: -0.2%), which was above market expectations of a 0.2% decline. At the current level, inflation is well below the Central Bank's (Riksbank) target of 2.0%. Annual average inflation edged down from 0.6% in February to 0.4% in March.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - rose 0.5% over the previous month in March, while annual core inflation remained unchanged at 0.9%.
According to its February Monetary Policy Report, the Riksbank expects inflation to average 0.4% this year and 2.1% in 2014 (previously forecasted: 0.3% and 2.3% respectively). FocusEconomics Consensus Forecast panellists expect inflation to average 0.6% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel sees average inflation at 1.8%.